Gold hits 6-month high amid weak trading ahead of US data

Gold prices hit a six-month high today, Tuesday, in thin trade, with the market’s attention shifting to the minutes of the US Federal Reserve’s latest monetary policy meeting due this week.

According to Reuters, gold rose in spot contracts by 0.8 percent, to $1838.69 an ounce, at 0257 GMT. Gold futures contracts in the United States increased by 1 percent to $1843.90.

The dollar index fell 0.1 percent, making gold priced in the US currency more attractive to buyers abroad.

Minutes of the Federal Reserve’s December monetary policy meeting are due to be released on Wednesday, which could provide guidance on the bank’s tightening path.

Gold is considered a hedge against inflation and economic uncertainties, but high interest rates increase the opportunity cost of owning gold because it does not generate interest.

Silver in spot contracts increased 1.1 percent to $ 24.25, and platinum rose 0.8 percent to $ 1077.98, while palladium fell 0.1 percent to $ 1792.21.